The influence of after-sales service quality, relationship quality and alternative attractiveness on customer loyalty of Malaysian national carmakers

This study aimed to explore the influence of the industry‘s specific dimensions of service quality on relationship quality, and customer loyalty with moderating effect of alternative attractiveness. The philosophical social exchange theory (SET) was employed to develop a conceptual framework, and based on extant literature, the relationships between the variables were tested and explained accordingly. Using the intercept survey method, a sample of 384 national carmakers‘ after-sales service customers was drawn through systematic sampling. The data collected was analysed by combining the descriptive and statistical methods of the Statistical Package for Social Science (SPSS) and the Structural Equation Modelling (SEM) using Partial Least Square (PLS). The finding revealed that automotive after-sales service quality has a significant positive relationship with customer loyalty. Besides, relationship quality also mediates the relationship between automotive after-sales service quality and customer loyalty. On top of that, the significant positive finding of alternative attractiveness as the moderator between relationship quality and customer loyalty demonstrates the importance of relationship quality to secure more existing customers to stay loyal to the national carmakers even under intense competition. Further investigations revealed that customer service was the most important dimension that contributes to the significant positive relationship between automotive after-sales service and customer loyalty. Even though support service carried the least weightage, its significant relationship showed it is important as a measure of service quality in automotive after-sales service. As to managerial and strategy recommendations, managers should prioritize more on ―how‖ the service is delivered rather than ―what‖ is actually delivered to customers. Similarly, the service providers should maintain high quality relationships to secure the longer tenure of relationship with their customers. Finally, directions for future research are deliberated accordingly